FILE – In this Oct. 30, 2007 file photo, a dump wagon adds freshly gathered corn cobs to a pile on a farm near Hurley, S.D. After decades of talk, the ethanol industry is building multimillion dollar refineries in several states that will use corn plant residue, wood scraps and even garbage to produce the fuel additive. (AP Photo/Dirk Lammers, File)

WASHINGTON (AP) — Days after a federal appeals court said the Obama administration is setting overly optimistic production quotas for the struggling biofuels industry, the government issued new standards Thursday that raise production estimates for 2013.

New standards announced by the Environmental Protection Agency require production of 14 million gallons of so-called cellulosic biofuels made from grasses and woody material. That’s up from an 8.7 million-gallon requirement in 2012 — when actual production was near zero.

An oil industry representative said the Obama administration was thumbing its nose at a ruling last week by the U.S. Court of Appeals for the District of Columbia. Login to read more